SEGA faces "extraordinary losses", cancelling games

Due to the challenging economic climate and significant changes within the interactive gaming industry, SEGA has made the decision to consolidate its publishing business in order to focus on developing digital content and driving its existing IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise. This realignment of the business around existing and digital IP is a necessity to ensure that SEGA continues to invest and enhance its digital business offering, whilst reducing its reliance on traditional packaged goods. As a result of the SEGA Sammy Board decision to consolidate the business, many of our internal functions will be re-structured and this could result in a number of redundancies within the publishing business across the Western organisation. The company will be entering into a re-structure phase to reflect the unprecedented change in our industry and to move the company forward appropriately.The changes will position SEGA as a content led organisation, maximising sales with a strong and balanced IP portfolio across both packaged and digital distribution. The management team are confident that the proposed restructure will benefit the company and make it fit for purpose within the changing nature of the industry over the coming years.

Expected income down almost 50%, so Sega decides to narrow their focus down and putting out titles that people want. Check out the list of Sega franchises (which is by no means a comprehensive list of titles they push out). I think it may actually be a poor decision, video games thrive on ingenuity and fresh content. In the face of competitors and substitutes offering one dollar apps, SEGA needs to consider something out of the ordinary and push some boundaries.